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Wednesday, May 7, 2014

Market Summary -- 7th May 14

FTSE STI closed 3,236.43, down 9.13 points or -0.28% with a total volume of 1.27b and a total value of S$1.01b. Total number of advance vs decline was 152 vs 257. Of the 30 component index stocks, 8 closed positive, 4 unchanged and 18 in the red. The top 5 gainer component stocks were :-

US markets fell on average 1% mainly due to weak corporate earning. Asian bourses taking the cue were all in the red. Nikkei -2.93%, SSE -0.89% and HSI -1.05%. STI was not spared falling 0.28% but in thin volume and value. Only 8 of the 30 index stocks posted gain.

Weak corporate earning, uncertain in Ukraine tension and lacking of positive news drove US markets lowered. Asian bourses with mostly sideline were all down for the day in thin volume. Those current negative news that drove down the markets were not something new just that the lack of positive news triggered investors to take profit after markets running up for past 4 months. While there could be more downside for US, Europe and selective Asian markets, selective Asian markets are worth waiting for the opportunity to bargain hunt.

STI with buyers staying sideline, short-term traders either cutting loss or selling off for profit fearing market could fall further drove STI down in line with regional bourses. Market might be biased towards the downside but the underlying fundamental of Singapore economy and some of the companies worth the time to wait for bargain hunt opportunity.